Indonesia sukuk catches market momentum

The Republic of Indonesia swept through its funding target for the first half of 2016 on Monday with an upsized $2.5 billion sukuk issue. As a result of the split- and 10-year deal, the sovereign has now raised 64% of the $9.35 billion it is targeting from international markets in 2016, or 2% more than the 62% it was hoping to raise by the end of June. The Baa3/BBB-/BB+ rated credit has been one of the chief beneficiaries of the market’s strong momentum following the Fed's decision to slow the pace of interest rate rises last week. As a result, the order book for the sovereign’s 144a offering closed around the $8.5 billion mark, encouraging it to upsize the transaction by $500 million and press down on the new issue premium.

Kuwait Finance House’s 2008 posts profit before provision and increase income

Edward Russell reported on Financeasia on 2 February, that Kuwait Finance House’s (KFH) 2008 posts profit before charges but faces falling revenues. In Q4, KFH's revenue fell 16.3 % quarter-on-quarter to KD 185 mn. The revenue decline increased 3.7 % from the previous quarter when it fell 12.5 % quarter-on-quarter. Despite the decline in revenues in the second half of the year, the bank managed to report an overall increase in income of 6.5 % year-on-year.

The finance house's unaudited full-year net profit totalled KD 157 mn(USD 542 mn on revenues of KD 884.9 mn. Given the current economic environment, KFH announced to retain KD 211 mn as a "provision". After the KD 211 mn provision, KFH lost anywhere between KD4 8 mn and KD54 mn for the year. Full-year and fourth-quarter audited results have yet to be released.

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